Saturday, April 23, 2011

The Gas Commission

Three months from now we won't hear anything about the Gas Commission investigation. Anyone really believes the Justice Department will prosecute an energy company. There hasn't been a major SEC investigation of any of the major financial institutions involved under President Barack Obama's watch. These companies needed bailout money because they hid their losses through off-the-books accounting practices. The New York Federal Reserve withheld announcement of a AIG credit swap exchange with.

"Do you think it might be feasible to hold off on the Maiden Lane III 8K and press release until next week?" Brett Phillips, a New York Fed lawyer wrote in an e-mail [to AIG counsel]. "The thinking is that the Maiden Lane III closing will be a less transparent event, and it might be better to narrow the gap between AIG's announcement and the New York Fed's publication of term sheet summaries."

Former New York Reserve chairman Tim Geithner was paying AIG 100 cent on the dollar of taxpayer money. No interest was charged. Geithner then went on to become Treasury Secretary.

I have no faith in the Obama administration cracking down on energy companies.

Update: another reason I doubt the White House will crack down is because it purposely sent out bogus numbers on the BP spill.

On 4 August, Jane Lubchenco, the NOAA administrator, demanded that the White House issue a correction after it claimed the "vast majority" of BP oil was gone from the Gulf.

A few days earlier, Lisa Jackson, the head of the EPA, and her deputy, Bob Perciasepe, had also objected to the White House estimates of the amount of oil dispersed in the gulf. "these calculations are extremely rough estimates yet when they are put into the press, which we want to happen, they will take a life of their own," Perciasepe wrote.

The financial crisis and Gulf spill gave the White House the opportunity to do the right thing. The White House felt protecting corporate interests is more important than the environment or taxpayers. The Obama administration bleeds neoliberal. People should stop kidding themselves that Team Obama is most concerned about the people.